BSP sees narrower 2024 current account deficit

March 15, 2024 - 3:45 PM
Bangko Sentral ng Pilipinas (Philstar file photo)

 The Philippines‘ current account deficit is seen narrowing to $5.8 billion in 2025, or 1.1% of gross domestic product (GDP), from a projected deficit for this year of $6.1 billion, or -1.3% of GDP, the central bank said on Friday.

The Bangko Sentral ng Pilipinas’ (BSP) previous forecast of current account deficit for 2024 was at $9.5 billion, or -2.0% of GDP, which was a narrower gap versus the $11.2 billion deficit of 2023.

The lower deficit reflects the downward revision in forecast for goods import and export, the BSP said in a statement.

The outlook for 2024 and 2025 “is largely underpinned on expectations of a slight improvement in both global and domestic economic conditions”, the BSP said, adding that risks to the growth outlook are broadly balanced.

It expects a balance of payments (BOP) deficit of $0.5 billion, or 0.1% of GDP, for next year, reversing a $0.7 billion surplus, 0.1% of GDP, forecast for 2024.

Cash remittances from the millions of Filipinos living and working abroad will grow by 3% this year and the next, the BSP said.

It will help the Southeast Asian nation record end-2024 gross international reserves of $103 billion in 2024 and $102 billion in 2025.

— Reporting by Neil Jerome Morales and Mikhail Flores; Editing by Martin Petty